Major Firearms Company That Banked On Hillary Winning Files For Bankruptcy

Share:

United Sporting Companies Chief Executive Officer Bradley Johnson admitted in a court filing that USC, which was founded in 1933 as Ellett Brothers before merging with Jerry’s Sports, Inc. in 2009 and formally changing its name to United Sporting Companies, Inc. in 2010, hiked its inventory before the election of Donald Trump. They figured that once a Democrat was elected, gun sales would soar because of the Democrats’ typical hostility for guns and avowed determination to restrict gun sales.

The court filing stated:

In the lead up to the 2016 presidential election, the Debtors anticipated an uptick in firearms sales historically attributable to the election of a Democratic presidential nominee. The Debtors increased their inventory to account for anticipated sales increases. In the aftermath of the unexpected Republican victory, the Debtors realized lower than expected sales figures for the 2017 and 2018 fiscal years, with higher than expected carrying costs due to the Debtors’ increased inventory. These factors contributed to the Debtors tightening liquidity and an industry-wide glut of inventory.

An over-supply of firearms following the 2016 presidential election and the financial distress of certain market participants led to industry-wide sales discounts. The Debtors were forced to lower prices to remain competitive and maintain sales figures, which further eroded the Debtors’ slim margins and contributed to the Debtors’ tightening liquidity.

The Daily Mail reported of Johnson, “ … he said the Republican Trump’s unexpected win over Democrat Hillary Clinton was a factor in net sales falling to $557 million in 2018 from an average $885.3 million from 2012 to 2016, with an accompanying glut of inventory.” – READ MORE

Share:
No Comments Yet

Leave a Reply